Unemployment drops as UK feels Olympic effect

The number of Britons currently out of work has fallen by 65,000, according to new figures from the Office for National Statistics.

During the three months to May 2012, the unemployment rate fell to 2.58 million – which equates to 8.1 per cent of the population that’s able to work. This is a drop on the last quarter’s total of 8.3 per cent, telegraph.co.uk reports.

In the three-month period, the number of people in employment in the UK rose by 181,000 to a total of 29.35 million.

Youth unemployment also saw a decline, falling by 10,000 to 1.02 million. This, it is thought, could be put down to the number of jobs in London rising as a direct result of the Olympic and Paralympic Games.

Not only did employment totals rise, but average wages did as well; seeing a 1.5 per cent increase on figures reported in the previous quarter. When excluding bonuses, the wage increase represented a 1.8 per cent rise on figures gathered last year.

Speaking to bbc.co.uk of the results, an economist at IHS Global Insight, Howard Archer, explained: “It is evident that restrained earnings growth as well as significant increases in part-time jobs and self-employment is helping to keep unemployment down.

“In addition, the imminent holding of the Olympic Games is currently providing a boost to employment.”